DL MD11's headed for FedEx

[MedFlyer]

Looks like DL will get a little cash infusion by selling 8 MD11's to FedEx.

http://www.thestreet.com/_mktwrm/markets/ericgillin/10184308.html?cm_ven=CBSM&cm_cat=FREE&cm_ite=NA

 

[General Lee]

Good. I had heard a rumor at the school house that we may use them for cargo for the Skyteam, but if we are NOT, then I would rather not have to pay for them while they sit in Goodyear, AZ.



Bye Bye--General Lee

 

[Goose17]

very nice!

I have been hearing this rumor for quite some time. It is nice to see something a little more concrete on the issue.

Goose17

 

[USNFDX]

It was announced today during Fedex's conference call!

 

[Mugs]

Just an interesting thought. That Dicovery Channel program about the American 191 accident at Chicago in 1979 mentioned that American had purchased the accident aricraft new in 1972 for $25 million. American's insurance policy that it carried on the accident airplane was for full replacement value. Due to inflation, American received a payment of $50 million dollars for full replacement value of the accident airplane in 1979. This resulted in quite an uproar when Bob Crandall pointed out at an employee meeting that American made a "profit" as a result of the accident. Oh yes, my point. Isn't it astounding that a 7 year old DC-10 was valued at $50 million in 1979 while a 7 year old MD-11 is only valued at about $37 million or less today (according to the article MedFlyer posted)? There was no mention in the Discovery Channel program about any other time value of money type of adjustments either. If I have the right angle on this, it is really yet another sad reflection on today's commercial aviation industry.

 

[USMCFDX]

I think the same thing happened with the FedEx 727 that crashed in TLH, Insurance added to the bottom line for the airplane that was lost.

Wished my insurance worked that way, I would go crash into a tree tomorrow and buy a new H2 to drive around in all the snow that is just around the corner here in AK. Too bad I can't hedge gas for it also.

Not sure how it works, but I also think that this is part of the reason that the MD-10 program is still around. Those accountants can do great things with numbers and IRS rules.

Glad to see more MD-11's comming to the property. Seems like we are flying the crap out of the ones we have. I have seen many more MEL items on the releases lately. The planes just do not seem to be parked long enough to fix them.

 

[Huck]

Five years ago at brand "G", we were paying 80 a copy for converted 11's. FDX had a contract for Swissair's (16 of them) for about that much.


Then the market cratered. Swiss went bankrupt so that deal was gone. Now you see why everybody renegotiated their leases.
I've heard some recent A300 's were going for less than 10. You can pay that much for a Lear!